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Some importance of operation management

Many companies that in recent years have been in a favorable business environment are now without knowing how to cope with this changing environment of reduced growth. In these circumstances where there are few options to grow via sales, our companies need a greater contribution from each and every one of the functions that have the greatest direct impact on aspects as fundamental to business performance as the profit and loss account, service and the degree of quality with which it develops its management.

Emilio Gómez with logo imp good definitionThe operations are an exciting area of management of the company that has a profound effect on productivity, both industrial organizations and in service. In fact, few activities have so much impact on the quality of our lives; even people who do not work in the area of ??Operations in a company are more than likely to have relationships with professionals in that area. When we study the Operations in the company, it is easier to understand what happens behind the scenes when you eat at a high-end restaurant or a lower restaurant, you order in a Telepizza or at McDonald’s, you order on ebay, computer on the Internet or go to the SAS Hospital for health care.

It should be remembered that while production is the creation of goods and services, the Operations Management are activities that create value in the form of goods and services by transforming raw materials or customer requisitions into products or customers served. In all the organizations there are activities of production of goods and services. In industrial enterprises, goods production activities are quite obvious because they produce tangible products, but although in service companies that do not produce physical goods and appear to be less obvious, activities are always carried out to complete the process of production. customer satisfaction.

Whether the end product is a good or a service, the production activities that take place in an organization are what we call Operations and are necessary for processes as diverse as a transfer to a current account, a liver transplant, occupation of an empty seat on an airplane or the education of a student.

Generally speaking, in order to produce these goods and services, all organizations must carry out three functions that are primarily necessary, not only for production but also for the survival of an organization. They are the following:

1. Marketing: generates demand or, at least, gets orders for products or services (nothing happens until there is a sale).

2. Production / Operations: elaborates the product or service.

3. Finance: Controls how the organization is going, and is responsible for paying bills and raising money.

Why are operations so important?

1. More than 80% of the professionals of a company are dedicated to the operative and in spite of it many companies do not worry to obtain to increase its efficiency.

2. Operations activities carry a large percentage of costs in any organization, so a very large percentage of the income of most companies is allocated to the function of Operations.

3. The Customer contacts the Operations professionals (either in the service or in the product when they start using it), so that a company will have more repetitive buyers and will be more competitive the better all the activities that will affect the offered service are optimized to the clients.

4. The Operations relate in combination with the rest of the business functions. Every organization does marketing (sells), finances (accounting) and produces (operations), and it is important to know how operations management activity works. Therefore, Operations Management provides a good opportunity for organizations to improve their profitability, competitiveness and service to society, by delivering excellent service and competitive costs.

The tools we will use for Operations must respond, among others, to the following issues:

– What variables does the general direction have to influence the way in which the Operations bring value to the company?

– How to adapt the Operations with the strategy adopted by the company?

– Can you reduce business costs through Operations while maintaining a reasonable margin and excellent service?

– What is the relationship between our operating processes and the results in the company?

– Are there working methodologies, such as lean manufacturing, that help companies improve productivity and therefore the profitability of the company?


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